I need to find the total fixed cost, total variable cost, average fixed cost, average variable cost, average total cost, and the marginal cost.... I have no idea how to.
The only data I am given is output = 10 and total cost = $40. It does not seem possible to find all that stuff based on those 2 numbers.
Thanks to anyone who helps.
2007-03-11 15:31:39 · 3 answers · asked by metsfan6986 1 in Social Science ➔ Economics
TFC+TVC=TC=$40
AFC+AVC=ATC=$4
2007-03-11 16:44:42 · answer #1 · answered by RayM 4 · 0⤊ 0⤋
Without some additional assumptions it is possible to get only one of the items.
the total fixed cost, the amount of capital required plus other set up costs.
total variable cost, the material and labor costs that are dependent on the amount of product produced.
average fixed cost, the ratio of the total fixed cost divided by the amount of product produced.
average variable cost, the ratio of the total variable cost divided by the amount of product produced.
average total cost=$40/10=4$ per unit.
the marginal cost, the change in the total cost due to the production of the last product.
One could make all kinds of assumptions about how capital intensive the business is.
2007-03-11 16:35:37 · answer #2 · answered by anonimous 6 · 1⤊ 0⤋
the respond is A. while there is unemployment in an economic device, it skill that the economic device isn't working at finished potential. while an economic device isn't working at finished potential, it production of x and y would be interior its production possibility frontier. wish this facilitates :)
2016-10-01 23:30:00 · answer #3 · answered by ? 4 · 0⤊ 0⤋